Internal Revenue Bulletin:
2006-48

November 27, 2006

INCOME TAX

LIFO; price indexes; department stores. The
September 2006 Bureau of Labor Statistics price indexes are accepted for use
by department stores employing the retail inventory and last-in, first-out
inventory methods for valuing inventories for tax years ended on, or with
reference to, September 30, 2006.

Final, temporary, and proposed regulations under section 199 of the
Code concern the amendments made by the Tax Increase Prevention and Reconciliation
Act of 2005 (TIPRA) to section 199, which provides a deduction for income
attributable to domestic production activities. A public hearing on the proposed
regulations is scheduled for February 5, 2007.

Final, temporary, and proposed regulations under section 199 of the
Code concern the amendments made by the Tax Increase Prevention and Reconciliation
Act of 2005 (TIPRA) to section 199, which provides a deduction for income
attributable to domestic production activities. A public hearing on the proposed
regulations is scheduled for February 5, 2007.

Proposed regulations provide guidance regarding the application of section
362(e)(2) of the Code to determine the bases of assets and stock transferred
in certain nonrecognition transactions. They also provide instructions on
how to make an election to apply section 362(e)(2)(C).

This procedure informs plan proponents in cases under chapter 12 of
Title 11 of the United States Code of the procedures to be followed to request
determinations of the income tax effects of proposed plans when such requests
are authorized by the bankruptcy courts.